New World Resources Agrees to Revised $230m Takeover Proposal from Central Asia Metals

Copper miner New World Resources (ASX: NWC) has entered into a revised $230 million off-market takeover agreement with Central Asia Metals, refining the original $185m all-cash offer the company received in May.

Central Asia Metals first agreed to acquire New World for $0.053 per share at that time and subsequently raised its offer to $0.055 after Canadian private equity firm Kinterra Capital tabled a competitive, non-binding $0.057 per share bid for New World last month.

As part of Kinterra’s bid, New World was not permitted to issue shares to Central Asia without prior approval, amid concerns over alleged insider trading when New World’s share price surged from 5% to over 12% in a week after an earlier purchase by Central Asia.

Fourth Revision

The latest offer is the fourth revision by New World’s board and raises Central Asia’s cash consideration for the acquisition to $0.062 per New World share, representing an 8.8% premium to Kinterra’s offer and giving New World an enterprise value of approximately $230m.

New World’s board said it had considered both offers and unanimously recommended that shareholders accept Central Asia’s proposal.

The board also advised that shareholders take no action in relation to the Kinterra offer.

Unsecured Loan Facility

New World and Central Asia have agreed to replace a proposed $10m equity placement with an unsecured loan facility for US$6.5m.

The company will use the proceeds to advance the project, as well as on pre-development and permitting activities including financial assurance requirements, and various transaction and interest costs.

The loan will be available for draw down once Central Asia achieves an equity holding of at least 50% and will be cancelled in the event that New World is acquired by another company.

Copper Portfolio

New World owns the flagship Antler project in Arizona, which contains 11.4 million tonnes at 4.1% copper equivalent and is positioned to capitalise on an anticipated surge in copper demand as part of the global energy transition.

A 2024 Antler pre-feasibility study outlined a 12-year operation producing copper, zinc, lead, silver, and gold in three separate high-grade, low-impurity concentrates for further refinement at off-site smelters in the US or overseas.

New World also owns the early-stage Javelin project in Arizona and the Tererro volcanogenic massive sulfide project in New Mexico.